Gemfields suspends share buyback programme amid Covid-19

(Sharecast News) - Gemfields said on Wednesday that its share buyback programme has been suspended and that all UK staff, including the board of directors, will switch to a four-day working week and take a 20% pay cut as it looks to weather the coronavirus pandemic.
The miner said that if the UK lockdown restrictions remain in place after the end of May, staff will shift to a three-day working week and a further 20% salary reduction may become necessary.

The company also said that its share buyback programme has been suspended until further notice, "given the considerable level of uncertainty and to further preserve cash".

Since its last update at the end of March, Gemfields said it has implemented additional measures. These include the immediate suspension of all but critical operations at the Montepuez Ruby Mine (MRM) in Mozambique. Security, maintenance and other essential services will continue "to ensure MRM is well placed to resume normal operations as soon as it is safe and practicable to do so," it said.

In addition, the company has suspended all expansionary capital expenditure at MRM for the foreseeable future.

As at 17, Gemfields had cash balances of around $63.2m, a net cash position of approximately $33.2m and undrawn overdraft facilities in Mozambique of $30m. Gemfields Grou.